Ebay and Amazon Accused of Allowing Profiteering on Essential Items
- Ebay and Amazon failing to prevent profiteering amid the coronavirus pandemic, says Which.
- Investigation found consistent overpricing of household items like cleaning products, thermometers, baby formula, and tampons on both platforms.
- Some listings had markups of up to 1000% for essential goods.
- Which calls for stronger action from online marketplaces to protect consumers.
Which has accused eBay and Amazon of failing to prevent profiteering during the coronavirus pandemic. An investigation found consistent overpricing of essential items such as cleaning products, thermometers, baby formula, and tampons on both platforms. The Competition and Markets Authority (CMA) had previously warned traders not to exploit panic-buying or price gouging but Which discovered multiple examples of inflated prices for these goods on eBay and Amazon. One 250ml bottle of Carex, which usually retails for £1, was seen priced at over £10 each on both sites, with one eBay listing showing the item at £100. Bleach products, baby formula, and thermometers also had significant markups. Which concluded that eBay and Amazon’s filters and checks were inadequate to protect consumers. Sue Davies, head of consumer protection at Which?, called for stronger action from online marketplaces and suggested the government should work with the retail sector to keep essential item prices reasonable.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the investigation findings and quotes from relevant sources. It does not include digressions or irrelevant details, nor does it present personal opinions as facts. However, it could be improved by providing more context on the CMA’s previous warnings and actions taken by eBay and Amazon to address price gouging.
Noise Level: 3
Noise Justification: The article provides relevant information about the failure of eBay and Amazon to prevent price gouging during the pandemic, but it could benefit from more in-depth analysis or discussion on potential solutions or consequences for these companies.
Financial Relevance: Yes
Financial Markets Impacted: The investigation affects the reputation and potential regulatory actions against eBay and Amazon, which are major financial companies.
Financial Rating Justification: This article discusses how eBay and Amazon have failed to prevent price gouging of essential items during the coronavirus pandemic, impacting their reputations and potentially leading to regulatory actions that could affect their financial performance.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article. The issue discussed is related to price gouging of essential items during the pandemic, but it does not meet the criteria for an extreme event.
www.retailsector.co.uk 
